Dollar with sudden strength? Our insights today

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 22nd, 09:30 CET EU German/French PMI data.
Thu, 22nd, 14:30 CET US Unemployment claims.

Dollar momentum

The US- Dollar has lost a lot of steam after comments from Jerome Powell pointed market participants to a potential rate cut in September. This also helps the positive mood in the equity sector, which has been moving higher. On a technical level the Dollar index might point to some gains against other currencies. The USDX is at a crucial support level currently. This could offer some strength for the Greenback and also causes some retracements for Gold and Silver. The unemployment claims from the US tonight might offer further insights.

Market talk

The JPY is gearing up some further steam. However, the positive sentiment is seen the most against the weaker USD. Also oil prices have continued with their slide. It looks like the USD 73.00 support zone has been broken, which could lead to further negative pressure in oil. On the other hand the Canadian Dollar is running higher. Not only is it gaining slightly against the EUR but massively against the Greenback. After a retest of the 1.3605 resistance zone the market might slide further. Technicals point to a potential push higher in the USDCAD currency pair, should some strength of the Dollar come back.

Tendencies in the markets

Equities positive, USD weak, cryptos positive, oil weak, metals sideways, JPY stronger.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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